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Why Waiting to Sell Your House Could Cost You: April COVID-19 Update

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Why Waiting to Sell Your House Could Cost You: April COVID-19 Update

Is Waiting to Sell Your House Worth The Risk?

The majority of people I talk to who expressed interest in selling their house the beginning of March now state that they would prefer to wait until after the COVID-19 scare to sell. When I ask how they think that will help them, they don’t have a fact-based response other than fear of the current uncertainty. Here’s why waiting to sell your house could cost you.

Numbers Tell Us The Market is Healthy

Although COVID-19 has negatively impacted the housing market, numbers show that there’s not as much to fear as previously expected now. Of course, this could change as time goes on. Here are some key things to note for April:

  • Average number of days on market decreased by over 2 weeks down to 27 days on market
  • There were more real estate transactions this month than last month
  • Numbers from April 2019 are comparable to the numbers from this April, showing we are in line with last year’s normal

Now if we look back at housing market predictions from January, we see that April is underperforming compared to expectations. We have seen a bit of a plateau this month compared to the expected increase in prices and housing demand as COVID-19 slows the market. People are getting laid off and cash is becoming difficult to come by. In addition, some lenders are tightening their requirements for people requesting mortgage loans.

Selling Now vs. Selling Later

The proof above shows that while things may have slowed, there is still an equal demand for houses. Less people are buying now, but there are also less people selling. In return, selling now is expected to bring you similar results as if you sold a prior to COVID-19. However, with layoffs becoming increasingly more common and household budgets shrinking, it’s uncertain what May and June will look like.

The lockdown is supposed to lift in May. Will we see a surplus of sellers with few buyers? That’s the risk of waiting. That’s why waiting to sell your house could cost you.

Quick Summary

We understand this is a scary time. Health and comfort of our community is at the top of our mind. If you’re still not sure whether you should sell now or wait in your unique situation, don’t hesitate to contact us. If you do want to sell and need advice on what to do to prepare your home for listing or things to avoid, reach out to us as well! We would love to do our part and help any way we can.

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